Académique Documents
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To
:Guide: Submitted by
{GURGAON}
(Batch (2007-2010
Certificate
I Yashdeep Nelson Lakra, Roll No. 0011061707 certify that the Summer Training
INSURANCE CO LTD. The matter embodied in this has not been submitted earlier
.for the award of any degree or diploma to the best of my knowledge and belief
:Date
:Date
:Designation
ACKNOWLEDGEMENT
At the outset I expressed my sincere gratitude to Dr. Manmohan Rahul ( Project
Guide) who has been a source of inspiration and guidance in preparation of this
.project report and without whom this project would not have been completed
Roll No-0011061707
CONTENTS
S.NO TOPIC .PAGE NO
1 Certificate
2 Acknowledgment
4
Chapter - 2 : SWOT Analysis of the
company
5
Chapter - 3 : Analysis of financial reports
of the company
Suggestions
8
Bibliography
9
Questionaire
10
EVALUATION OF THE PROJECT
This is to certify that the project titled “Bajaj Allianz Life Insurance
Co” submitted by Yashdeep Nelson Lakra of BBA Semester V of
Ansal Institute of Technology affiliated to Guru Govind Singh
Indraprastha University , Delhi has been examined by the
.following examiners
The business of insurance is related to the protection of the economic value of assets.
Every asset has a value. The asset would have been created through the efforts of the
owner, in the expectation that, either through the income generated there from or
some other output, some of his needs would be met. In the case of a motorcar, it
provides comfort and convenience in transportation.
There is no direct income. There is a normally expected lifetime for the asset during
which time, it is expected to perform. The owner, aware of this, can so manage his
affairs that by the end of that life time, a substitute is made available to ensure that
the value or income is not lost. However, if the asset gets lost earlier, being
destroyed or made non-functional, through an accident or other unfortunate event,
the owner and those deriving benefitsthere from suffer. Insurance is a mechanism
that helps to reduce such adverse consequences.
Life Assurance
It is the business of effecting contracts of insurance upon human life, including any
contract whereby the payment of money is assured (except death by accident only)
or the happening of specified any contingencies dependent on human life, like death
a specified age. The contract would be subject to the payment of premiums for a
term,
1.Fire Insurance
2.Marine Insurance
3.Miscellaneous (Accident)
Insurance,In modern times, it is classified as follows:
a)Insurance of Person
b)Insurance of Property
c)Insurance of Interest
d)Insurance of Liability
Importance of INSURANCE
The entire effort of human life is to proceed from uncertainty to certainty. The
rigmarole of life proceeds with first acquiring the wherewithal to earn a living and
then striving for its betterment and ensuring that the comfort and pleasure derived
from a physical commodity or a human being continues.
It is at the latter stage that the mechanism of Insurance comes in play.The concept of
insurance is in essence related to the protection of the economic value of assets.
Every asset whether physical or in form of a human being has a value. The asset is
built up in the expectation that, either through the income generated there from or
some other output, some needs of the individual would be met. For example, in the
case of an industry its production is sold and income generated. In the case of a
vehicle, it provides comfort and convenience in transportation.
However there is a normally expected life cycle for every asset during which time it
is expected to perform its assigned role. So, a prudent individual can manage his
affairs so that by the end of that life cycle, a substitute is in place to ensure continued
benefit/comfort.
However, if due to an accident or other unfortunate event, the asset gets destroyed or
made non- functional, the person deriving benefits there, from suffer. Insurance is
the mechanism that helps to soften the impact of such adverse consequences by
providing for some monetary substitution to face such unforeseen circumstances.The
need of insurance arises from the chances of an accidental occurrence destroying or
making an asset non-functional. Such loss producing eventualities are called perils
e.g. Fire, floods, breakdowns, lightning, earthquakes, etc
.BAJAJ ALLIANZ LIFE INSURANCE CO. LTD (1
Bajaj Allianz Life Insurance Company Limited is a Union between Allianz SE,
one of the world’s largest Life Insurance companies and Bajaj Auto, one of the
biggest 2- &- 3 wheeler manufacturers in the world.
1. Most Profitable Pvt. Life Insurance Co Rs.63cr (US $ 15.3 mn.) profit for FY
06-07
2. Over 2 million (20,79,217) policies in this year – highest amongst all pvt.
sector players and taking the number 1 position.
3. Largest distribution network to reach the customers across the country with
2,13,000 agents, 900 offices in 840 towns, 200 corporate agents & Bancassurance
partners
ALLIANZ SE
BAJAJ AUTO
Bajaj Auto is one of the most trusted name is Indian auto for over 55 years.
Bajaj Auto finance one of the largest auto finance cos. in India
Rs. 6,340 Cr. Turnover & Profits after tax of 767 Cr. in 2004-5
REGISTERED OFFICE
-:Delhi Offices
Address : G-85, First Floor, Main Visak Marg,Preet Vihar ,Delhi -110092 Contact :
011-42420972
Address : 309,Apra North Ex Plaza Netaji Subash Place Pitampura Opp.T V Tower
Delhi -110034 Contact : 011-32983811
To be the best insurance co. in India to buy from, work for & invest
in &To be the first choice insurer for customers.
VALUES
Ensuring world class solutions & services and Offering customised products
.Also Transparent benefits to all the customers a responsible, customer focused
market leader, we will strive to understand the insurance needs of the consumers
.and translate it into affordable products that eliver value for money
Understanding the needs of customers and offering them superior products and
service.Leveraging technology to service customers quickly, efficiently and
.conveniently
The success of the company will be founded in its unflinching commitment to 5
core values -- Integrity, Customer First, Boundary less, Ownership and Passion.
Each of the values describes what the company stands for, the qualities of our
.people and the way we work
MISSION
-:INDIVIDUAL PLANS
In our constant endeavor to secure a bright and happy future for you and your
family, we offer a range of insurance products that is just perfect for your
.investment needs
Pension plan
Term plans
New UnitGain Plus SP: Single Premium plan with maxx allocation
New UnitGain Plus SP Plan is a Single Premium plan with maxx allocation and
gives you a Guaranteed death benefit, it offers you choice of 5 active investment
funds with 3 free switches allowed every year. Flexi plan allows you to make
.Partial and Full withdrawals after 3 years
.”New UnitGain Premier : Give 100 and get 105 Now –‘ umeed se zyaada
A Simple single premium unit linked investments plan which give to upfront
.105%allocation of the single premium on day 1
The only Unitlinked insurance plan with ethical equity fund which also Suits
religious investment guidelines as well is a good investment plan which offers 3
investment funds to choose from, host of additional benefits and guaranteed life
.cover making it a very attractive insurance product
UnitGain Guarantee SP
This is a unique Single Premium plan, which gives guaranteed maturity benefit
regardless of market performance. This plan is specifically designed keeping in
mind the uncertainty in the stock markets and comes with a unique 3-in-1
Capital Guarantee Fund, which gives guaranteed maturity benefit of upto 112%
.of allocated premium less charges
This savings plan combines high protection (up to quadruple cover) with a
unique family income benefit
Right from providing for your child's education to securing a bright future, this
plan is tailor made to suit your child's needs
This is the only money back plan that offers quadruple protection, going up to 4
.times the basic sum assured, and a family income benefit
This is the perfect plan to protect the family from the repayment liability of
outstanding loans, in the unfortunate case of death of the loanee. There is also
an option to cover the co-applicant of the loan at a very nominal cost under this
.plan
A single premium investment plan for10 years, which provides life cover along
.with growth in savings
HealthCare
The 6-in-1 HealthCare plan at just Rs 100 per month is a wonderful way to
secure your health for 3 years term
Pension Plans
.When you have retired, your golden years can be secure. Live a worry–free life
New UnitGain Easy Pension Plus : Unit Linked Retirement Plan without life
cover
Bajaj Allianz UnitGain Easy Pension, is a plan that helps you take control of
your future and ensure a retirement you can look forward to. This is a regular
.premium investment linked deferred annuity policy
In addition to life insurance and attractive tax benefits, this plan enables you
make adequate provisions for your years after retirement as well. This deferred
annuity plan comes with a host of additional benefits which include term cover,
.accidental cover, Critical illness and hospital cash benefits
Term Plans
Pure Insurance plans to protect your family
: TermCare
The "Bajaj Allianz Risk Care" Plan is a pure term insurance plan & offers one
of the most economical means to provide financial security to your loved ones.
.The only pure term plan in the market to provide Hospital Cash Benefit
This whole life plan provides survival benefits at the age of 80 hereby
.making sure you are financially secure at a time when you need it the most
.This scheme provides for systematic funding to meet your gratuity liabilities
BAJAJ Allianz offers flexible riders, which can be added to the basic policy at a
.marginal cost, depending on the specific needs of the customer
:Accident benefit .2
.This rider option pays the sum assured under the rider on death due to accident
Size of Organisation (5
In the five years after its foundation, the Allianz Group's Indian life insurer has
sold over two million life insurance policies and achieved a total premium
income of more than one billion US dollars.
The market share of the company has gone up from 2.8% to 7.2%. The
company has made a profit before taxes of Rs 117 crore and a profit after tax of
Rs 75 crore. In the first quarter of the current financial year, it garnered a
.premium income of Rs 574 crore and net profit of Rs 21 crore
.Data gives preference of respondents of insurance company
Interpretation
of the people have LIC policy and is ranked number one by that 78%
.percent of respondent
-:Present Leadership (8
Board of Directors
:Secondary Data
Product Brochures
Annual Reports
IRDA act, 1999
Handbook of Insurance agents of different Life Insurance companies
Internet websites of IRDA and various Life Insurance companies & various
.websites
CHAPTER II: SWOT ANALYSIS OF THE COMPANY
:Strengths
Best Employees with depth knowledge: Highly trained employees and also a.2
.all India network available at the company’s disposal
Offering products for all classes: One of the major strengths of the company is.3
targeting of the products to all classes of the society .Not only the HNI’s (High
.Net worth individuals) are targeted but also people from lower classes
High Rate of Returns : The high rate of returns have boosted the prospects of.3
. the company and is looked upon as a name of trust and worthiness
Customer Satisfaction
(IC's (Insurance Consultants
Trust amongst the Population
Money power : Huge financial resources helps the company to setup a good .4
infrastructure for working and also helps conducting business on massive scale ,
.also which makes them ignorant about the gestation period
.The agents are very selectively chosen have excellent communication skills
Large network branches : This has helped the customer to great extent as.6
.there are large number of office all over India
Offering products for all classes: This has been one of the major USPs of the.7
comapnay that is providing products with which all classes of people can be
.identify with
Strong IT infrastructure: Bajaj has always supplied its ICs with state of art.8
. technology and equipments
Trust amongst the Population: With renowned names like Bajaj auto and .11
Allianz SE joining hands and having satisfied customer ,trust among population
.is bound to increase
:Weakness
Competitor Attraction :Its all-India presence and good track record makes .1
Bajaj Allianz a fertile company for poaching by other private insurance
.companies
Attrition : Due to increase in competitors employee turnover ratios does go up.2
. thus taking away good personnels from the company
Lack of Media Coverage : One of the major flaws in the promotion strategy.3
.is low usage of media as a way of promotion
Rigid Organizational Structure : The rules and norms of the company tend to.5
.be very rigid hamper growth
High targets : High and sometimes unrealistic targets are set for financial .6
.advisors and for the sales departments
Less Product Differences :Many competitors in the market offer same product .7
.by the title difference in the premium and offerings
:Opportunities
Rural Market : Tapping the rural market would provide immense database of.3
.customers
Health insurance and pension schemes, an estimated market potential of
.approximately $15 billion
:Threats
Lower Profits for future :An industry where everyone focuses on increasing .1
.market share and aggressiveness greatly increases pressure on profitability
more companies entering the market which would cause decrease in the 16
.market share & profit
Multiple Players : Multiple players in the life insurance so, Bajaj Allianz .2
faces very tough competition from other leaders in the industry. Bajaj Allianz
needs to work hard in order to stay competitive insurance market. Further, the
company should appoint professional agent who should be able to provide
customer with a comparison of multiple schemes and also explain them in
simple terms, so that customer able to make an informed decision.Players like
.ICICI Pru and SBI life with low premium for the similar plans
LIC : LIC has woken up from sleep and is following competitive strategies. .4
Its huge surplus in Life Fund gives a capability to lodge Price war
Suggestions
A serious effort in media coverage and increase in employee benefits
Bajaj Allianz should now try to identify the gap between current level of
.customer service and customer expectations
:Some of the strategies being recommended are as follows
Product Differentiation : Offering a product that is distinctly different from
.other products available in the market
. Riders: These are additional offerings along with the main product
Flexibility: The companies should make their products flexible for the
.convenience of their customer
COMPANY
Despite conditions which were not conducive for growth of gross premium, the
Company managed to maintain a growth rate which was more than twice that of
the market. Company’s gross written premium (excluding share of premium from
the IMTPIP), grew by 33.3% during 2008-09 and, despite intense price
competition, the company maintained its second position among the private sector
companies in terms of gross written premium.
During 2008-09, the company clocked gross written premium of Rs. 24,045 Mn
excluding share of business from the IMTPIP as compared to Rs 18,033 Mn in
2007-08. Including share of inward business from the IMTPIP, the gross written
premium amounted to Rs. 25,780 Mn. On account of your Company’s policy of
steadily
increasing it’s retention in line with it’s capital base, the net earned premium for
the year (excluding net premium from inward business of the IMTPIP), rose to Rs.
13,266 Mn, an increase of 58.6% over theprevious year of Rs. 8,366 Mn.
Including the net premium arising out of the share of business from the IMTPIP,
the net premium for theyear 2008-09 was Rs. 14,134 Mn. Although de-tariffication
had an adverse effect on the price per policy, the number of policies sold continued
to grow. In the year under review, your Company sold 6.61 Mn. policies as against
4.90 Mn. policies sold in the previous year. This growth indicates that despite
severe price competition, more customers preferred your Company’s service
offerings, drawn by it’s strong brand image, convenience of buying and satisfaction
with its service levels.
The total incurred claims for the current year including actuarial provisions but
excluding share of claims of the IMTPIP, were Rs. 8,375 Mn. as against Rs. 5555
Mn. in the previous year. The number of claims reported during the year was
413,281 as compared to 309,160 in the previous year.
Profit Analysis
The company has earned a Profit Before Tax of Rs. 1,679 Mn for the year ended
31st March 2009, an increase of 43.5% over the previous year profit of Rs. 1,170
Mn. The Profit Before Tax includes a provision of Rs. 361 Mn towards provisions
for losses from the IMTPIP.
The net profit for the year, after provisions for reported losses from the IMTPIP,
was Rs. 1,056 Mn as against Rs. 754 Mn reported in 2007-08, which is an increase
of 40.0%. In a year when prices of insurance fell significantly,increasing its
profitability whilst improving the market share has been a significant achievement
for the Company.
The Earnings per share (EPS) for the year ended 31st March 2009 was Rs. 9.59/-
(compared to Rs. 6.85/- for the previous year) and the book value of equity shares
on 31st March 2009 was Rs. 52.15/- per share (as against Rs. 37.40/- per shares as
on 31st March 2008).
CHAPTER IV : LESSONS LEARNT
Experience
I had a very good experience while working as in Bajaj Allianz. My
training was of two months during which I worked in the following
:department
Knowledge
2. What are ULIP’s and why are they so important for a person.
The old and out dated technique of tele marketing is used to prospect customers. The
company must sponsor shows and give presentations in corporate houses. Also a
genuine effort should be made for media coverage. Coordination among employees is
. required to a great extent
Other brands are well advertised and have higher recall value
Some prospects have already invested and are not interested in further
investments
company
purchase insurance
Speak about the good features a plan offers like high returns, life cover, tax
Try to sell the product/plan which the consumer requires and not the plan
Attract the youth of India with higher returns on investment as returns are
Bajaj Allianz is actually Bajaj auto & Allianz SE – BAJAJ has a good
brand name and this brand name could be used to give a push to its products
services
Norms and rules of the company should made a little flexible as it would
:RECOMMENDATIONS
SUGGESTIONS
Here are some suggestions, which may help to
strengthen the firm further
Books
• Kothari C.R., (1999) Research Methodology, Wishwa
Prakashan
• Kotler P. and Armstrong G., (2005) Principles of
Marketing New Delhi, Prentice Hall of India
• Kotler P., (1999)Marketing Management Analysis,
Planning, Implementation and Control, New Delhi, Prentice
Hall of India
• Saxena Rajan, (1999) Marketing Management, Tata
McGraw Hill
Websites:
• www.bajajallianz.com
• www.indiainfoline.com
• www.irdaindia.org
• www.thehindubusinessline.com
QUESTIONNAIRE:
Name : _____________________________________
Address : _____________________________________
C) Exhibition D) Catalogue
E) Price-off
C) Exhibition D) Catalogue
E) Price-off
C) Exhibition D) Catalogue
E) Price-off
Q.4 Which technique requires less time in sales
promotion?
C) Exhibition D) Catalogue
E) Price-off
C) Exhibition D) Catalogue
E) Price-off
C) Exhibition D) Catalogue
E) Price-off
E) Price-off
Q.8 Price off and installment offers are necessary for
sales promotion?
A) Yes B) No
C) Can’t say
A) Yes B) No
C) Can’t say
A) Yes B) No
C) Can’t say